The total-lock-locking (TVL) in the mantra blockchain protocol reached an annual high despite 90% OM price crash.
Mantra TVL has fallen 500% following OM crashing
On April 15, Mantra’s TVL (in OM terms) jumped to 4.21 million OM (~ $ 3.24 million), an increase of more than 500% from two days before, according to data source Delete.
Mantra’s Cumulative TVL Chart. Source: Defillma.
Noteworthy, tvl’s increase is accompanied by a dramatic collapse in OM pricesthat dropped more than 90% on the weekend. The mantra team connects the seller-off to the “reckless forced fluids” initiated by centralized exchanges.
A Rising TVL Usually suggests that users lock more tokens in smart protocol contracts through staking, pool pool, lending, or farming for yield or network participation.
Analyst Dom Batang -Batat “AGIENDED PURCHASE” in crypto exchanges during the 90% OM price crash on April 13, costing $ 35 million worth of OM purchase when “mantra) collapse occurs.”
Mantra Total Combined CVD area compared to the price of the spot. Source: Dom
Despite 90% price crashing, simultaneous TVL spikes and “aggressive purchases” suggest that some participants have seen a collapse as a purchase opportunity.
The fact that millions of dollars are deployed while crashing opens points on tactical accumulation, perhaps through whales, insider, or opportunist speculators who bet on a rebound or farming incentives.
Until April 15, the price of OM traded as high as $ 0.99, up to 170% from lows over the weekend.
OM/USDT Daily Price Chart. Source: Tradingview
97% of Mantra TVL is a DAPP
The increases in TVL’s mantra include red flags.
For example, around 97% of the mantra’s TVL growth comes from the mantra swap, the native decentralized protocol exchange. Automatic pools that make the market accounted For 4.11 million OM on TVL, making it the main driver behind the sharp outbreak.
Mantra swap tvl performance chart. Source: Defillma
A more decentralized ecosystem will have a greater capital distribution with many sources of liquidity throughout the lending market, staking platforms, derivatives, etc.
Related: Mantra said that a particular exchange may be caused by OM collapse
In addition, the mantra’s fully melted appreciation (FDV) of $ 1.88 billion to April 15 dwarfs the total amount locked (TVL) of $ 3.24 million, a dazzling connectivity that could signal potential overvaluation.
Mantra TVL compared to FDV (in terms of dollars). Source: Defillma
With only 0.17% of the theoretical value of actively deployed to its ecosystem, the protocol shows low capital efficiency and limited real-world use.
This imbalance suggests that the market cap is likely to be driven more through the speculation than the adoption, and in a large part of the tokens is likely to be locked, there is a high risk of dilution in the future as vested tokens are locked.
Analyst Jamesbitunix posed Mantra’s FDV as a major risk to OM Dip buyers, stating:
“A lot of merchants jump into this ‘bottom’ – both in place and with action. Personally, I’ll trigger another correction – preferably a sweep of lows followed by a quick bounce.”
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
